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Showing contexts for: arbitration assignment in Pranav Ansal vs Vistra Itcl (India) Limited & Anr. on 23 May, 2023Matching Fragments
i. Associate Builders v. Delhi Development Authority20. ii. Ssanyong Engineering and Construction Company Ltd. v.
National Highways Authority of India21.
54. He also stated that the Arbitrator in the award has based his entire reasoning on the principle that the assignment of contract would also amount to assignment of arbitration agreement contained in contract. However, the DSA has not been assigned to the subsequent Debenture Holders by the DPA; rather the DSA has been novated by the DPA in terms of Article 12 of the DPA. He stated that, such erroneous interpretation misconstruing novation of an agreement as assignment of the agreement (a) arises from refusal to consider the impact of the DPA, (b) is prima facie erroneous that no reasonable person would take such a view and hence the view is patently illegal and vitiates the award.
i. Were the debentures issued under the DSA assignable?Signature Not Verified Digitally Signed
By:JYOTIRMOY GHOSH O.M.P. (COMM) 290/2019 and connected matter Page 45 2023:DHC:3565 ii. Were the debentures validly assigned? iii. In case of valid assignment of debentures, does the arbitration agreement in the DSA (under which the debentures were issued) also gets assigned to the assignees?
122. The proposition farmed on behalf of respondent no.1 is quite erroneous and untenable in law. It is well settled that an arbitration clause in an agreement is also assigned with the assignment of the contract to a third party. The principle of assignment of the arbitration clause is very well discussed and developed in (1) a decision of Bombay High Court in "DLF Power Limited V. Mangalore Refinery & Petrochemicals Limited and
(ii) another decision of the Delhi High Court in "Kotak Mahindra Bank V. S. Nagabhushan and Ors". The Delhi decision is on facts also quite close to the case in hand.
123. The rights of the current debenture holders for realisation of the Amounts Due and the right of the claimant to invoke arbitration for enforcing the guarantee for and on behalf of the current debenture holders are fully protected by the principle of assignment of the arbitration clause contained in a contract along with the transfer of the contract.